Thank you very much, Mr. Chair, and thank you for the invitation to appear.
As you know, the Canadian Chamber of Commerce represents nearly 170,000 members of all sizes, representing all sectors and regions in the country.
The committee has chosen an extremely pertinent theme--Canada's place in a competitive world. Governments, and I would say past governments and current governments, have done a lot to improve the situation on fiscal and other fronts. That said, there's more to do, and we are falling behind many of our competitors and must take swift action. I'm particularly focused here on productivity.
Productivity, as you know, is not just some line on a business ledger. It means Canadians having good paying jobs, a high standard of living, and the kind of fiscal freedom that we need to afford the sorts of social programs that Canadians enjoy. But our productivity record has not been sterling. We are at about 74% of that of the U.S. and we've fallen to 17th place in the OECD ratings in productivity.
So what do we need to do? You have the chamber's brief in front of you. We have a series of recommendations in the tax area, and those are designed to improve the incentive for business and entrepreneurs to invest in Canada. They're also designed to focus on personal income tax as well as corporate income tax. Obviously, the mix of tax burden and regulatory burden is the magic ingredient that makes countries competitive, and on this, I think Canada has a lot to do. We're still concerned about the effect of tax rates on capital, in which area Canada is extremely high.
Also, as was mentioned by colleagues around this table, the regulatory environment is one area I would signal to the committee that needs improvement. I would also note that Canada's scientific research and experimental development program needs further enhancement. That is one I would draw to your attention in our brief because of the need to enhance R and D, as others have said around this table.
Second, the development of human capital is absolutely essential. In our opinion, investment in post-secondary education is an important asset. Attracting more immigrants with qualifications that we need and taking advantage of those qualifications is also a key element of the strategy.
Third, investing in high-quality infrastructure, particularly border infrastructure and communications networks, is very important for tracking foreign investment.
Just to wrap up, clearly, Mr. Chair, we need to create the fiscal room to make this all possible. That was one of the questions of the committee. That needs to be done by controlling program spending, making spending more efficient, and reducing our level of debt. I would certainly say that the chamber was very appreciative of the announcement yesterday of the amount of debt being paid down from the last fiscal year. That was a welcome announcement.
We also note that we would advocate a cap, a limit, on the growth of program spending of approximately the equivalent of anticipated population growth plus inflation, to a maximum of 3% a year, within which the government should control its spending. So once again, it's reducing the debt, controlling spending, smart taxation policies.
We hope that you will look at our brief. I'd be very happy to reply to any questions the committee members might have. Merci beaucoup.